1 in 3 chance of further U.S. downgrade: S&P's Chambers

Reuters

WASHINGTON (Reuters) - Standard & Poor's managing director John Chambers said on Sunday there is a one in three chance of a further U.S. credit rating downgrade over the next six months to two years.

"We have a negative outlook ... from six months to 24 months," he said on ABC's "This Week."

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"And if the fiscal position of the United States deteriorates further or if the political gridlock becomes more entrenched, then that could lead to a downgrade. The outlook indicates at least a one in three chance of a downgrade over that period."

Chambers said that it would take some time for the United States to recover its AAA rating.

"It would take a stabilization of the debt as a share of the economy and eventual decline. And it would take, I think, more ability to reach consensus in Washington than what we're observing now," he said.

(Reporting by Jackie Frank; Editing by Doina Chiacu)

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